All Forum Posts by: Anthony Chara

I suggest you ask your local RE Club for references on who out there really has good quality info without the hype or their hand out always asking for more money to give you the 'real' info. Give REAPS a call or go to one of their meetings.

It all depends on the price/terms and numbers. One other thing to consider, you will have limited control over the exterior of the property since those decisions are made by the COA board. Since, as you previously stated, Todd, you won't 'own' the building/complex.   On the plus side, you'll have a forced reserve in place, assuming the COA knows what it's doing, to pay for things like the paint, roof, landscaping, parking lots, snow removal, etc.

Hi @Jesse Chunn, suggest you try www.CCIM.com and www.NARPM.org. I also recommend you go to some of the local RE Club meetings you have in that area and ask the members there who they might recommend. They'll probably also tell you who to avoid as well.

Here are 2 websites you can look through. www.CCIM.com and www.NARPM.org. Other than that, I would suggest you go to your local RE club and ask the people at those meetings who they would refer that they know and trust. There are 2 I know of in your area, Distressed REIA and Boca Raton REIA. I'm sure there's probably one closer to you in Miami. You can also check out www.NationalREIA.com to find groups all over the country.

Have you tried www.rentometer.com? I don't think it will give you historical information, though. Why do you want historical data anyway? I think Marcus & Millichap has some reports with this info, but it only goes back about 5 years.

Hi @Lawrence L., yes, you can use it for both, but keep in mind, this is just my absolute minimum. Depending on the condition of the property and condition of the residents (lower cost units usually get beat up faster than higher priced units) you may have to set aside more. I suggest you use the process I gave above as an example and just do the math yourself. 

Eg. Have some roofers give you an idea of how long they think the current roof will last and the cost of replacement at that time. Then, divide that amount by months and by units to get a monthly amount to set aside in a separate account at your bank so you don't spend it.

Do this same calculation for things like paint/siding, landscaping, parking lots, walkways, AC units, water heaters, boilers, chillers, signage, etc.

You should be speaking to PM's that manage those types of properties in those areas along with RE Agents that sell those types of units. They generally have reports they'll share with you showing rents, vacancies and expenses.

Most lenders will inspect the property prior to loaning money to you. As part of that process, they will do a Needs Assessment and they'll tell you how much you need to set aside per unit per year for your CapEx. They'll figure out how much longer the roof is likely to last, when you may need to redo the parking lot, paint the building, replace AC units, etc. They'll calculate the total cost, divide that by how many months it will be until replacement time, divide that by the number of units, and have you put that amount into an escrow acct every month just like Taxes and Insurance.

If your lender doesn't do a Needs Assessment or doesn't require you to have a CapEx acct, I would suggest you discipline yourself to set aside at least $300 per unit per year which equates to $25 per month per unit.

Actually, you could be violating SEC laws by even posting that you're looking for money partners. Its called an Open Solicitation. Suggest you check with your SEC attorney before posting more info or another email asking for money for a deal.

Suggest you use an attorney to put together your PPM. DON'T COPY someone else's. I can refer you to one I use if you want their info.

Regarding using a 3rd party, be very careful and do your diligence on them before you give them any money. I've heard from several people that have paid companies big money up front for their assistance with 'fund raising' and none of those companies ever raised a dime. If you find a good one, please let me know.